BNY Mellon has taken a significant step in the evolution of banking by launching a tokenized deposit service. This innovative offering aims to enhance payment processes and collateral management by leveraging blockchain technology while adhering to regulatory standards. The publication provides the following information:
Introduction of New Service
The new service allows banks to represent customer balances on blockchain systems, effectively merging traditional banking with modern digital solutions. By providing blockchain functionality to deposits, BNY Mellon ensures that these transactions remain fully compliant within the regulated banking environment.
Advantages of Tokenized Deposits
Tokenized deposits are designed to deliver advantages akin to those of stablecoins, such as:
- increased efficiency
- reduced transaction costs
without the need to create new monetary instruments. This approach allows financial institutions to integrate blockchain capabilities into their operations while fitting seamlessly into existing regulatory frameworks.
Recently, Pyth Network's innovative oracle service has gained attention, particularly from the US Department of Commerce, highlighting its growing influence in decentralized finance. This development contrasts with BNY Mellon's recent launch of a tokenized deposit service. For more details, see Pyth's Oracle Service.
